Bourse closes at highest in 39 months

Wednesday, 10 September 2014 00:12 - - {{hitsCtrl.values.hits}}

Reuters: Stocks closed at their highest in nearly 39 months on Tuesday, led by diversified and banking shares, as low interest rates and continued buying by foreign investors into risky assets boosted investor sentiment. The main stock index rose 0.51%, or 36.03 points, to close at 7,123.44, its highest closing since 13 June 2011. “There was lot of foreign interest seen in Keells (John Keells Holdings Plc) and it seems to be continuing,” said Dimantha Mathew, Manager (Research) at First Capital Equities Ltd. “We are seeing a slow and steady movement in the market; the run has been steady and backed by earnings.” The index has gained nearly 20.48% so far this year. The Bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, was at 83.088 on Tuesday, Thomson Reuters data showed. Stocks are deemed “overbought” above the 70-mark, signalling a reversal in the near term. Market heavyweight John Keells Holdings Plc led the gains in the overall index with a rise of 2.44% at Rs. 256.10, while Commercial Bank of Ceylon, the country’s biggest listed lender by market capitalisation, rose 1.74% to Rs. 158. Exchange turnover was Rs. 1.92 billion ($ 14.75 million), higher than this year’s daily average of Rs. 1.2 billion. Foreign investors were net buyers of Rs. 309.9 million worth of shares, extending the year-to-date net foreign inflows to Rs. 9.46 billion. The stock and foreign exchange markets were closed on Monday for a Buddhist holiday.

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